India eyes a slice of China’s maritime trade with Adani Group’s new mega port

Until now, the world’s biggest container ships had skipped India because its harbours weren’t deep enough – docking instead at ports such as Singapore

But that could now be set to change with Adani Ports’ new Vizhinjam transshipment container port near the southern tip of the country

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Cargo ships are seen berthed at Nanjing port in China’s eastern Jiangsu province. India’s current container traffic is less than 10 per cent of China’s but if the new port in Vizhinjam is able to lure more ships, it’ll give India a stronger footing in the global maritime trade. Photo: AFP

Published: 1:32pm, 16 Oct 2023

When Zhen Hua 15 – a heavy load cargo carrier sailing from the East China Sea – unloaded at Vizhinjam port on Sunday, it did more than just setting down the site’s first gigantic cranes. It also put India on the map for the world’s biggest container ships.

Located near the southernmost tip of the country, the Vizhinjam transshipment container port – the first of its kind in India – will allow the nation to grab a bigger slice of the international maritime trade currently dominated by China. It will also bolster its aspirations to be an alternative manufacturing hub by reducing logistics costs for cargo coming to and from the country.

The new terminal, inaugurated on Sunday, is another feather in the cap of Gautam Adani’s conglomerate, which faced a scathing short-seller attack in January alleging corporate malfeasance – charges the Adani Group has denied. With a dominance that already spans ports, mines, airports and power utilities, Vizhinjam will further cement the billionaire’s status as India’s infrastructure king.

The proximity to international shipping routes that account for 30 per cent of global cargo traffic, and a natural channel that goes as much as 24 metres (79 feet) below the sea makes Vizhinjam an ideal hub for some of the world’s biggest ships to call in. Until now, such ships had skipped India because its harbours weren’t deep enough to handle the vessels, and docked instead at ports such as Colombo, Dubai and Singapore.

Transshipment refers to transferring cargo from an original ship to another, bigger mother ship at a port on the way to the cargo’s final destination.

The much-awaited deep-sea port along Kerala’s scenic coastline has been developed by Adani Ports and Special Economic Zone Ltd. in collaboration with the local state government. Adani Ports, India’s largest private-sector port operator with a 30 per cent market share, is also developing Israel’s Haifa port and plans to build a hub in Vietnam as part of its expanding global footprint.

“The Indian Ocean is 50 per cent of sea trade,” said Chakri Lokapriya, chief investment officer at TCG Asset Management Co. in Mumbai. “The Vizhinjam port with its natural advantages will improve operating margins for Adani Ports.”